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news.Novartis Pharmaceuticals has announced plans to restructure US business and reduce its cost base with the current restructuring focused on the US market.
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According to the company, the restructuring will strengthen its competitive position in light of loss of Diovan patent and announces charge for Rasilez/Tekturna.
The US General Medicines restructuring will result in the reduction of 1,960 positions, the company said.
The restructuring was prepared to respond to the loss of patent exclusivity for Diovan expected in the US in September 2012.
The restructuring is expected to result in an exceptional charge of approximately $160m to be recognized in the results for the first quarter of 2012.
The reassessment of future sales potential of Rasilez/Tekturna leads to an exceptional charge of approximately $900m in fourth quarter of 2011.
Novartis will recognize an exceptional charge of approximately $160m related to termination of the PRT128 (elinogrel) and SMC021 (oral calcitonin) programs in the fourth quarter of 2011.
Novartis division head David Epstein said these decisions will free up resources to invest in the future of their business which will suit to bring new valuable therapies to patients.